Physical principles of drop formation will be investigated for the highly controlled encapsulation of islets and other viable tissue. The goal is to produce capsules that have good biological capatibility, exclude cytotoxic antibodies, and provide sufficient permeability to preserve the islet viability. Advancements in the encapsulation methods and islet transplantation techniques offer one of the more promising methods for treating diabetes. Past success with transplantation to a diabetic dog that has remained euglycemic for over 6 years without exogenous insulin demonstrates that the procedure can be successful. Generating consistent high quality encapsulated islets and rejecting blank capsules and debris have been identified as critical components in the success of the procedure. The encapsulation technology to be developed will utilize the most recent developments in atomization technology, sensors, and controls algorithms to enable real-time control of the atomization parameters. Electrostatic forces will be designed to manipulate the drop formation process and also the capsules while in flight. Controlled capsule wall thickness will provide an adequate bather to the immune system and allow optimal diffusion of the nutrients to the islets and the release of insulin. Sensors and interactive controls systems will be utilized to ensure consistent reliable encapsulation. PROPOSED COMMERCIAL APPLICATION: Encapsulation of islets for transplantation has significant promise in treating diabetes. The encapsulation approach also has promise for treating a number of neurological diseases including Parkinsons and Alzheimer's. Perfection of the encapsulation process is a critical step in expoiting this approach to treating these diseases. Approximately $100 billion is spent each year just to treat diabetes. Successful development of the encapsulation and transplant methodology will provide a tremendous benefit to society and the approach has significant enconomic potential. Initial commercial applications will focus on islet encapsulation.